Assessment order under the GST Act was challenged as violative of natural justice, with no evidence of DRC-01 or personal hearing notice. The court set aside the impugned order, allowed the petitioner to treat it as a show cause notice, directed filing of objections within two weeks, and remanded for fresh assessment after granting hearing.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
W.P.No.32847 of 2024
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 11.11.2024
CORAM
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ
W.P.No.32847 of 2024 and
W.M.P.Nos.35679 and 35680 of 2024
M/s Raja Hardwares, Represented by its proprietor Mr.Raja Chidambaram, 24/115 NA, Anna Nagar, Krishnagiri Main Road, Shoolagiri 635 117, Krishnagiri District. ..Petitioner
Vs.
The Deputy State Tax Officer -1, Hosur (North) II, Hosur 635 109. ..Respondent
PRAYER: Writ Petition filed under Article 226 of the Constitution of India, praying to issue Writ of Certiorari calling for the connected records pertaining to the impugned proceedings of the Respondent herein made in GSTIN: 33ARLPC2913J1Z1 dated 27.08.2024 and quash the same as illegal.
For Petitioner : Mr.Manoharan S Sundaram
For Respondent : Mr.T.N.C.Kaushik, Additional Government Pleader.
1/5
W.P.No.32847 of 2024
ORDER
The present writ petition is filed challenging the impugned order dated 27.08.2024 on the premise that the same is made in violation or principles of natural justice inasmuch as it is contrary to the provisions of the Goods and Services Tax Act, 2017 (hereinafter referred to as “GST Act”).
2. It is submitted by the learned counsel for the petitioner that the petitioner is engaged in the business of hardware and is a registered dealer under the GST Act. During the relevant period, the petitioner filed its return and paid the appropriate taxes. However, on examination of the information furnished by the petitioner in GSTR-3B, GSTR-01, GSTR-2A, E-Way Bills and other records available, it was found that there was an excess claim of Input Tax Credit. Subsequently, a Show Cause Notice was issued to the petitioner in Form DRC-01 on 21.05.2024. While so, the petitioner has now been served with an order of assessment in Form GST DRC-07.
3. It was further submitted by the learned counsel for the petitioner that neither the intimation in DRC-01 nor a notice for personal hearing was granted to
W.P.No.32847 of 2024
the petitioner. Though the impugned order makes a reference to DRC-01 and states that a personal hearing was granted, it does not even set out the date on which the said notice was issued, nor is there any reference to it in the preamble of the impugned order. The impugned order has been passed without even putting the petitioner on notice, thus suffers from violation of principles of natural justice and contrary to the provision of GST Act.
4. To a pointed question, the learned counsel for the respondent was unable to clarify whether DRC-01A or DRC-01, or for that matter a notice for personal hearing was issued.
5. In view thereof, the impugned order dated 27.08.2024 is set aside. The petitioner is granted liberty to treat the impugned order as a Show Cause Notice. The petitioner is directed to file its objection within a period of two weeks from the date of receipt of a copy of this order. The respondent shall thereafter redo the assessment, after granting the petitioner a reasonable opportunity of hearing in accordance with law.
W.P.No.32847 of 2024
as to costs. Consequently, connected miscellaneous petitions are closed.
11.11.2024
Speaking (or) Non Speaking Order Neutral Citation: Yes/No shk
To
The Deputy State Tax Officer -1, Hosur (North) II, Hosur 635 109.
W.P.No.32847 of 2024
MOHAMMED SHAFFIQ, J.
shk
W.P.No.32847 of 2024 and W.M.P.Nos.35679 and 35680 of 2024
11.11.2024
1 issue framed by the court
Whether an assessment order passed without a personal hearing notice and without proof of DRC-01 notice violates natural justice under the GST Act.
2 provisions across 2 enactments
M/s Raja Hardwares, represented by its proprietor Mr.Raja Chidambaram
The Deputy State Tax Officer -1, Hosur (North) II
Mohammed Shaffiq
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
